Trump ends $17.75 federal contractor minimum wage

President Trump has rescinded a Biden-era executive order that requires federal contractors to pay workers a minimum wage of $17.75 per hour.

Trump said it was necessary to claw back the “inflationary” executive order to make America “united, fair, safe, and prosperous again.”

Issued by President Biden in 2021, Executive Order 14026 had initially required a minimum wage for certain federal contractors of $15.00 an hour. With annual inflation adjustments, that minimum wage rose to its current level of $17.75 per hour.

Technically, a US Department of Labor (DOL) rule implementing EO 14026 is still on the books.

The DOL, represented by the US Department of Justice (DOJ), has been defending the rule from several legal challenges. As recently as March 13, the DOJ filed a brief in support of the rule in the 5th US Circuit Court of Appeals.

It is likely that the DOL will repeal the rule and/or the DOJ will stop defending it in court. The DOJ had not responded to a request for comment as of the time of publication.

Although Executive Order 14026 has been rescinded, an earlier executive order from President Obama (Executive Order 13658) remains in effect for contracts federal contracts or subcontracts entered into or renewed, extended or modified before January 30, 2022.

Workers covered under EO 13658 must be paid at least $13.30 per hour (or $9.30 per hour for tipped employees), and these rates will be adjusted for inflation on January 1, 2026, and every January 1 thereafter.

It is not clear whether EO 13658 also applies to federal contracts or subcontracts entered into or renewed, extended or modified after January 30, 2022.